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TUESDAY, JUNE 30, 2015

Kantar: Local radio ad spending grew 5% in first quarter. Total U.S. advertising spending went down 4% in the first quarter to $37.4 billion, but for local radio and especially local Hispanic radio it was a totally different story, says Kantar Media in a new report. Local radio ad spending was up 5% over a year ago; local Hispanic radio did even better than that, up 6.5%. Those radio numbers look even better when you look at other sectors – 16 of the 21 types of media Kantar measures were down for the quarter. Some of drop off can be explained by the fact that this year’s results are being compared to last year’s, when the Winter Olympics contributed a $600 million lift to the ad market. But even discounting that, overall Q1 ad spending was down 2% over a year ago, said Jon Swallen, Kantar’s chief research officer, and in total, most of the disappointing numbers should be viewed as an indication of a down advertising market. National spot radio was down 11.3% and network radio ad sales were down 2%. But the radio business can be pleased that, in the local arena, at least, it hung tough. While radio’s local numbers were up 5%, by comparison, spot TV was down 6.8% and local newspapers down a whopping 16%. Even the insert business was down 3.5%. Some local advertisers are redirecting local spend “to some extent” to radio, Swallen said. “But quite honestly, not as much, anecdotally, as local digital is gaining.” Swallen attributed this year’s plus-side local radio revenue to a comparison to a fairly blah Q1 for local radio a year ago, but noted automotive and medical were hotter than normal categories in Q1.

What Hyundai’s new NFL deal means for radio. Radio stations that carry NFL play-by-play have just been handed a new opportunity to grow the business they do with Hyundai. The Korean automaker has signed a four-year deal making it the new official automotive sponsor of the National Football League. Hyundai replaces General Motors, which held the sponsorship title since 2001. Already a big radio buyer in many markets, Hyundai capturing the coveted sponsorship mantle is seen by experts as an opportunity for NFL flagship stations, networks and affiliates to expand their business with the automaker and its local dealerships. “It certainly helps local stations to have NFL sponsored tie-ins and opens the door for them to potentially increase their business with Hyundai, but it doesn’t guarantee anything,” says David Pearlman, head of Pearlman Advisors which works with media companies and sports teams. “It certainly could cause local Hyundai dealers in NFL cities to potentially step up their game.” Hyundai is already a big radio user at both the Tier One or manufacturer level and at the local dealer level. The automaker ran 10,986 Tier One ads nationally from April 1 through June 29 on stations tracked by Media Monitors. Its dealer markets line up nicely with many NFL markets, where several dealerships have bought significant radio campaigns. Among them are St. Louis’s Suntrup Hyundai (which ran 6,352 spots during that period,) San Diego’s Kearny Mesa Hyundai Subaru (4,826 spots), Cincinnati’s Kerry Hyundai (3,434) and Cincinnati’s Kerry Chevrolet Hyundai (1,796). On a national level, Hyundai is a big user of sports marketing, according to Automotive News, and says it wants to raise its profile in the U.S.

Cox doubles down on country in . has expanded it country footprint in Georgia by stringing a pair of 100,000-watt class C1 signals together and branding them as “Your Georgia Country.” One of the FMs, the Arcade- licensed WNGC (106.1), which covers a large chunk of the state northeast of Atlanta, including Athens, was already in

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com TUESDAY, JUNE 30, 2015 the format as “North Georgia Country.” Yesterday CMG nuked “modern rock “X107.1” on WTSH-FM (107.1), licensed to Aragon, to serve the northwestern part of the metro and north along the I-75 corridor toward Chattanooga. CMG operates WTSH under a local marketing agreement with owner Woman’s World Broadcasting. The company claims “Your Georgia Country” has the largest country signal in the Southeast and will serve listeners from Atlanta, Athens, Rome and areas north across Georgia. The retooled country format sprinkles classic country artists like George Strait in with contemporary acts like Luke Bryan, Miranda Lambert, Blake Shelton and Keith Urban. “Country is the hottest format right now and was our greatest opportunity in our number one market,” explains CMG Atlanta radio VP/GM Donna Hall. “We’re now thrilled to bring another exciting choice for country in Atlanta and north Georgia that complements the other great CMG radio brands in the Greater Atlanta area.” In Atlanta “North Georgia Country” will compete with two established brands: iHeartMedia’s “94.9 The Bull” WUBL, which ranked sixth in Nielsen’s May survey with a 4.9 share of listeners aged 6+, and Cumulus Media’s “Kicks 101-5” WKHX, which ranked 13th with a 3.5 WTSH was much further down the ranker with a 0.5 share.

Hunnicutt makes Big Loud career move. After 17 years with the company, iHeartMedia EVP & GM of National Programming Platforms Clay Hunnicutt has announced his departure to launch a new career chapter in the record business. Hunniccut will become president of Big Loud Records, a new label partnership with Grammy, ACM and CMA-award winning songwriter Craig Wiseman, artist managers Seth England and Chief Zaruk (Florida Georgia Line, Chris Lane), and award winning producer Joey Moi (Florida Georgia Line, Jake Owen, Nickelback, Daughtry). “This one of a kind startup will blend the unique skills of all five of us to bring new artists to listeners through all the key platforms available today,” Hunnicutt tells Inside Radio. Hunnicutt joined Clear Channel-predecessor Jacor in January 1998 as regional VP of programming, rising to Clear Channel EVP of programming in July 2008 before advancing to his current position in January 2014.

Now available from Amazon: NextRadio. Consumers that want to listen to FM radio on their smartphone without eating into their cellular data have another way to access NextRadio. The free app that wakes up FM receivers on compatible phones is now available on the Amazon App Store. The app is approaching 3 million downloads but there are 25 million customers with NextRadio-compatible smartphones. Getting a big brand like Amazon to offer and promote the app is important for building awareness, says NextRadio VP of marketing Maura Kautsky. Its availability on the Amazon and Google Play stores makes NextRadio accessible to consumers with compatible phones that aren’t sold with the app pre-loaded. But it also serves as a reminder to those with the pre-loaded app to activate it, says Jeff Smulyan, CEO of Next Radio developer Emmis Communications. “Our job is to let people know it’s there,” he says. “A lot of people have it pre-loaded and never look at it.” Amazon has made a push into music with a digital music service for members of its Prime online shopping service. In its app store, the NextRadio page includes a detailed description and listing of product features. Amazon is also featuring NextRadio ads on the store. The company approached Emmis, Smulyan says, after the online retailer saw NextRadio user studies from Sprint, which the radio industry signed a three-year partnership with in August 2013 to put the app on 30 million Sprint phones. “We think Amazon is just one more validation,” Smulyan says, adding that his company continues to talk with other carriers. “You’ll see some very good news from us.”

Beats 1 to launch with sponsorship ad model. Tech giant Apple is taking a page from public radio’s playbook for its new Beats 1 internet radio station. The global, 24/7 stream, which launches today, will feature sponsor mentions between songs and hosted segments, rather than traditional radio and video spots, according to Ad Age. Apple is making the sponsorship opportunities on Beats 1 a “major selling point” in its meetings with advertisers and agencies, Ad Age says. Apple will, however, feature audio and video ads on its free, commercial-supported streaming service, which also kicks off today. To avoid ads altogether, users can opt for the $9.99 per month subscription option. Beats 1 is part of Apple’s strategy to entice listeners to buy its subscription package. The online station is hosted by live DJs, including former BBC Radio 1 DJ

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Zane Lewis from Los Angeles, “Hot 97” WQHT, New York morning man Ebro Darden in New York, and Julie Adenuga, from London’s Rinse FM. The station will alternate one and two hour programming blocks from the trio of personalities with shows hosted by musicians and celebrities. The station will be integrated into every Apple device as part of its new music app. That gives Beats 1 immediate access to a trove of potential users and removes a major obstacle that other music services and broadcasters face — how to get users to download their app.

FTC cites a pair of auto dealers for deceptive ads. What will it take to get Federal Trade Commission investigators into a brand new car? Well, a truthful ad, for starters. Two Las Vegas dealers, Planet Hyundai and Planet Nissan, have agreed to settle charges by the FTC that they used deceptive print ads to lure customer with deals too good to be true. The ads violated the Consumer Leasing Act and the Truth In Lending Act by failing to disclose lease and credit terms. And even though the complaints leveled against both dealers specifically zeroed in on newspaper ads, the consent order both agreed to had rules about straight talk – very straight talk – in radio ads and other media. The consent order says that “In communications disseminated orally or through audible means (e.g., radio or streaming audio),” the dealers making disclosures must deliver them “in a volume and cadence sufficient for an ordinary consumer to hear and comprehend them.” Another section requires the dealer to make sure, “the required disclosures are presented in an understandable language and syntax. It also exactly defines what the dealers need to tell customers about common phrases and word used in ads or showrooms. The rules are in effect for 20 years. Since last year, the FTC’s Operation Steer Clear has been on the prowl looking for deceptive car advertising, and nabbed nine dealerships that agreed to 20-year settlements. These Las Vegas busts weren’t part of that program but the result was similar. Planet Nissan rans ads that said, in big, bold type, “NOT A LEASE” that was, in fact, a lease, the small print said. Others offered great deals, but the discounts applied only to certain types of customers.

José Valle elected NAB Radio Board chair. Univision vet José Valle has been elected Radio Board chair for the National Association of Broadcasters. Valle is the former Univision Radio chief who last week became president of political & advocacy sales for parent Univision. He succeeds Lincoln Financial Media president & CEO Don Benson, who was elected Radio Board second vice chairman. At the recent NAB board meeting in Washington, the NAB Radio board also reelected NRG Media president & CEO Mary Quass as first vice chairman and voted Emmis COO Pat Walsh to the board’s major group representative seat. The elections produced a new chairman of the NAB Joint Board, which works with radio and TV: TegnaMedia president Dave Lougee will take over for YMF Media senior advisor Charles Warfield, whose term expired. Formerly known as Gannett, Tegna owns or provides services to 46 TV stations. E. W. Scripps Company SVP Brian Lawlor was elected Television Board chairman, succeeding Lougee. Hearst Television president Jordan Wertlieb was elected first vice chair of the Television Board, while Marci Burdick, SVP of broadcasting and cable at Jose Valle Schurz Communications, was elected second vice chair. Mitch Rose, SVP of government affairs at NBCUniversal, will assume the designated network seat on the executive committee

RAB names new professional development SVP. Radio sales and training exec Jeff Schmidt will join the Radio Advertising Bureau as SVP of professional development, effective July 6. Schmidt arrives from sales training and management development company Sparque, where we was an EVP and partner. He reports to president and CEO Erica Farber and replaces John Potter who announced his retirement from the trade group in early May after 15 years in the position. The RAB says Schmidt will oversee its professional development group across all of its training services and work with member groups to provide a development practice “positioned to serve an evolving industry sales force focused on digital, solution- based marketing and sales efforts.” Schmidt will also lead RAB efforts to train the next generation of radio sales pros with a focus on recruiting millennials to the industry. Schmidt has held various roles during a 26-year radio sales career for companies including Cumulus Broadcasting, Mid-West Family Broadcasting and Hearst Corporation.

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Billboard jumps into live music events. Radio companies expanding their presence into large-scale concert events have some new competition from Billboard. The music industry publication is jumping into the live music business with its first ever Billboard Hot 100 Music Festival. Named after its most famous chart, the event will take place August 22 and 23 at New York’s Jones Beach. Produced in partnership with promoter LiveNation, Billboard says the festival will feature three stages of music over two days from more than 30 different artists in a festival atmosphere with a vendor village. The lineup will be announced July 9, and a presale will start July 13. “With this first-of-its-kind festival on the beach just outside New York City, Billboard is officially expanding its live event footprint,” Billboard president John Amato said in a statement.

Private equity firm buys majority stake in Mediaocean. Private equity firm Vista Equity Partners has acquired a majority interest in Mediaocean, which with competitor Strata are the two major processing systems used for media buys, including radio. No purchase price was disclosed, but various media reports put the investment value at $720 million. Mediaocean’s cross-media software platform is designed to automate all phases of ad workflow. The company says it manages more than $100 billion in annual global spending, working across digital and traditional media like radio and TV. In the radio space, its CEO Bill Wise told AdExchanger, one of Mediaocean’s proudest achievements was creating an ad marketplace design that worked with Spotify and Pandora and others in the digital radio space. The companies say that Vista’s involvement will accelerate global growth and further drive product innovation for Mediaocean. Michael Donovan, executive chairman of Mediaocean, will retain the remaining equity in the company and remain a board member. In a statement, Donovan said that Vista “works more like an enterprise software holding company than a classic private equity firm.” The company said one of its goals is to expand Mediaocean’s international footprint in Europe.

FCC clears Entercom’s purchase of LFM. Entercom has received the greenlight from the Federal Communications Commission for its $105 million purchase of Lincoln Financial Media. The deal, announced in December 2014, still requires approval of the Justice Department, which has stalled the transaction over concerns about ownership concentration in Denver. The FCC’s approval includes Entercom moving Denver’s “Sports Radio 104.3 The Fan” KKFN into the Pike’s Peak Trust for an eventual sale. That will still add five stations to Entercom’s Denver cluster and put the company into three growing top 20 markets – Atlanta, Miami and San Diego.

Magnum trades ‘Lake’ for ‘Shore’ in Milwaukee. Magnum Radio has rebranded its new Milwaukee adults hits stations as “92.1 The Shore” after objections registered by the E.W. Scripps Company over its appropriation of “The Lake” moniker, which it had used for years in the market. Magnum has changed the station’s call letters from WMKQ to WVTY, which ties in with its new positioning statement, “Where Variety Matters.” Scripps used the “Lake” handle in Milwaukee for seven years until flipping WLWK-FM to country as WTKI (94.5) in late May. Within hours Magnum converted country WMKQ to “92.1 The Lake.” Scripps contacted the station about the moniker and WMKQ’s new logo, which was strikingly similar to the one used by Scripps. Now Magnum has dropped “The Lake” positioning and found a suitable alternative. In an email to staffers, Reid Magnum said the station has been “weaving in ‘shore’ references on the air for the past ten days. It’s a natural fit because our new transmitting and antenna systems are delivering signal from Racine up and down the Lake Michigan shoreline from Milwaukee to the Chicago suburbs.”

‘La Preciosa’ launches new morning show. The Spanish adult hits “La Preciosa” network debuted a new morning show yesterday featuring Spanish-language radio vets Velia Irene and Pepe Reyes. The new “Levantate” program airs from 6-11am Pacific on five iHeartMedia-owned stations in the West that make up the network. The new “Levantate” hosts are familiar voices to Spanish-language listeners: Irene is moving up from La Preciosa’s midday slot and Reyes has worked at San Jose’s KAZA when it aired Spanish oldies. He also worked for programming supplier Radio Express in Los Angeles. La Preciosa is iHeart’s 24-hour Spanish adults hits format, which originates at flagship KPRC-FM, Monterey-Salinas-Santa Cruz and is fed to sisters stations in Fresno, Bakersfield and Riverside, CA and Tucson.

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